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March 2018

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As a part of preparing
the country for the 2008 Beijing Olympic Games, Government of China had
emphasized on the aspects of environmental protection. Chinese authorities had introduced a
sequence of bans and restrictions on chemical transportation, production and
buying-selling activities from the beginning of June lasting through to 30th
September in order to protect the environment during the Olympic Games. The Government had set
about halting production and closing down factories. This has had a deadening
effect on the Chinese domestic market which cannot supply enough dyeing and
printing raw materials causing the prices to go high. As many as 1000 dyeing
and printing factories had been shut down in Zhejiang Province while many
others in Hebei, Henan and Shandong Province had been asked to stop production
till the 2008 Beijing Olympic Games. At the same time, prices of dyestuffs have
increased by over 3 times and the situation was critical. Hence the exports of
Chinese dyestuff products have suddenly decreased due to uncertain market
condition and fluctuation which make international companies to consider
developing alternative sources of suppliers.

After Olympic, some of the experts comment that
the situation will be under control in a short period of time whereas some others
believe that, it would be quite difficult for China to recover its global image
in the Textile Dyes and Chemicals industry. Fibre2Fashion.com has taken views of
some of the traders and companies from China regarding the "Post
Olympic Scenario of Chinese Dyes and Chemicals Industry". Some traders were not interested
to discuss anything, and merely replied that China dyeing and textile industry is not
very promising currently, while a few others came forward to share their
thoughts.

Ms. Maisiefrom Tianjin Hui Quan Fine
Chemical Co., Ltd, a manufacturer of Optical brighteners in China has shared her view with us. Ms. Maise states that In the beginning of this year,
due to the influence of Olympics, the price for raw material was jumping in China, so was the price of dyestuffs and optical brighteners. Therefore, the export volume
has reduced sharply. Well, domestic market was very good in the first half of
year. I know many foreign mills were also affected by Olympics. As optical
brighteners; manufacturer in China, we hope the price can be stable, so that
export volume can return to normal in the second half of year. Now, the
Olympics have finished successfully. After Olympics, we think the prices for dyestuffs and optical brighteners will be a little stable, maybe a little lower,
however, the price can not be as lower as Pre-Olympics. I hope in the following
days of this year, the price for raw materials can be acceptable by us mills,
and the price for dyestuffs and optical brighteners can be acceptable by our
customers.

Mr. Gavin from HangzhouGuocai Chemicals Co., Ltd, specializing in the
manufacture and sales of organic pigments and their intermediates, inorganic
pigments, oil-soluble pigments and intermediates of pigments--H-acid and red
base etc. shared his views with us. According
to him In fact, Olympic has a great influence on chemical industry. First, it
makes the government pay more attention to the environment. Because of
this reason, some chemical factories which do the great damage to the
environment have closed. Second, it makes the price of chemical products
very high which will be not changed in next very long time. Third, it
makes the factories to think more ways to improve theprocessing technique to
keep ahead.

Ms. Carol from Hangzhou Liyi Chemical Co., Ltd shared her views with us. According
to her the price of dyes is falling now but still higher than before Olympic. Most
of factories are involved in production. Very few of them are closed. Sending
chemical samples is still difficult now; dyestuff samples sending have much restrictions
in custom".

Well, a number of questions may arise
in mind like how much time will be required to return to the normal stage? Will
China recover its image in the global market? What happened about all those
chemicals companies which had shutdown before Olympic? Will they start their
operation? Will the Government take some corrective actions? etc. Time will
reveal all the answers.

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